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Commentary

Mobile Coupon Users On The Rise

According to eMarketer, the number of adult mobile coupon users in the US rose nearly 18% to 92.6 million in 2015. By the end of 2016, mobile coupon users will
increase by 11% to 104 million in the US. And Koupon Media (a mobile offer platform) reports 500 million mobile coupons delivered in 2015.

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Customers spend more
money, buy more products, and adopt new technologies when they’re given a mobile coupon, says the report. As mobile engagement becomes increasingly important to brands and
retailers, mobile coupons are emerging as a top priority.

Industry Trends, according to the report:

26% increase in basket size when customer
uses a mobile coupon

39% of customers spend more if they receive a personalized coupon

42% of mobile users have used a mobile coupon

60% of
customers would adopt mobile payments if offered coupons

US Adult Mobile Coupon Users in Millions

Year

Millions of Coupon Users

2013

61 million

2014

79

2015

93

2016

104

Source: Koupon Media, August 2016

The study from Koupon Media illustrates the promise of mobile coupons in the years to come, says the report. A large consumer store chain was launching a mobile
offers program, and looking for the best way to introduce the coupons to its customer base. The retailer offered a “30 Days of Free” campaign, delivering a new free offer
each day for 30 days across its Facebook, Twitter and Instagram channels, and as an advertisement on radio and TV.

The campaign was a success, with most offers
hitting their redemption caps and 88,646 store trips were generated. Today the retailer continues to see positive results with its new mobile offers program.

0.4 million
offer views

88,646 store trips

$314k added revenue

A second experience reported a major brand engaging customers offering mobile coupons through a
TV ad offering to engage customers on mobile devices and to drive trial of the product. The free offer became the centerpiece of the brand’s commercials, delivering
150,000 offers and driving a 71% click-through rate and a 26% redemption rate.

Findings from the study, considering the analysis of consumer store retailers, found
that beverage offers perform the best, led by energy drinks, soda, juice and coffee redemption rates.

Selected Mobile Coupon Performance

Product Category

Mobile Coupon Redemption

Energy

43%

Soda

17%

Juice

15%

Coffee

12%

Food

11%

Candy

5%

Water

4%

Snack

2%

Time to Redemption

0 - 2 mins

58%

2 - 5 mins

7%

5 min - 1 hour

11%

1 - 12 hours

8%

12 hours - 1 day

4%

+ 1 day

3%

Redemption Rate by Offer

Free

15%

BOGO

7%

$Off

3%

Source: Koupon Media, August 2016

In 2015, 65% of customers redeemed an offer within 5 minutes of seeing it, says the report, further emphasizing the importance of delivering an offer to a customer in the
right place at the right time.

The report says that 2015 was the year of proving that mobile coupons move the needle. Now that it’s been proven, concludes the report, the
Koupon Media findings predict that more CPG brands will launch large nation-wide mobile offer campaigns, with omni-channel offers being promoted in store, through mobile apps and via
SMS, email and social channels.

In addition, Valassis announced the results of its 2016 Purse String Survey revealing insights about today’s shoppers, including their habits
and preferences for saving. Results indicate that savings-oriented consumers today are driven by and utilize deals through all channels, including print, online and mobile.

When asked
about their increased couponing behaviors over the past year, 58% of respondents reported using more print coupons, 38% said the same about mobile coupons and 32% are using online coupons or coupon
codes more often. Nearly half of the respondents indicated they use six or more coupons per shopping trip with 27% using 10 or more coupons. By using coupons, 42% of those surveyed save $30 or
more each week and 21% save $50 or more.

Additional key findings from the Valassis survey respondents point to several critical attributes marketers should consider, says the report.

More than half of shoppers say they have visited a store, restaurant or other business after receiving an offer on their mobile device when they were near the business location

72% of
consumers say they have looked for coupons or offers while in-store via their mobile device; millennials (90%) and affluent shoppers with $100K+ household incomes (81%) are much more likely to do
so

35% of shoppers use print and digital coupons equally while 51% say they print out digital coupons for use in-store

More than one-third report feeling “rewarded” by
the number of deals/savings received in a given day via email, text, social and app notification

Over half would be more likely to shop for groceries online if they could use more coupons,
with 66% of millennials agreeing